A maker of athletic footwear, apparel, and equipment, Nike is the world's largest seller of running shoes and sportswear, selling under the NIKE, Jordan, and Converse brands. It began in 1964 as Blue Ribbon Sports, when runner Phil Knight and his track coach Bill Bowerman sold Japanese shoes from a car trunk, renaming the company in 1971 after the Greek goddess of victory. Legend says Bowerman poured rubber into his wife's waffle iron to create the famous "waffle" sole.
10-K · Fiscal year ended May 31, 2026 · SEC filing ↗
FY2026 revenue was flat at $46.4B while net income fell 3% to $3.1B as tariffs and weak NIKE Direct offset wholesale gains
NIKE's decline reversed to flat after two years of contraction. Revenue held at $46.4B in FY2026, rose 0.2 points to 42.9%, and fell 3% to $3.1B as North America tariffs and a 6% drop were partly offset by a 6% wholesale rise and a $986M tariff recovery. The business has stabilized at a lower profit base, with buybacks paused and margins still pressured by trade costs.
Key takeaways
was flat at $46.4B in FY2026, ending the 10% FY2025 drop and the flat FY2024 that followed a decade of growth, as wholesale rose 6% to $27.5B while fell 6% to $17.7B on lower traffic.
improved 20 to 42.9%, helped by lower warehousing costs and favorable currency, partially offset by higher product costs and margin pressure; a $986M benefit from probable recovery of IEEPA tariffs was recognized in cost of sales and largely offset tariff impacts.
Section summaries
Business
NIKE is the world's largest seller of athletic footwear and apparel, operating through NIKE, Jordan, and Converse brands globally.
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The company operates four NIKE Brand geographic segments (North America; EMEA; Greater China; APLA) and a stand-alone .
(owned retail stores and digital platforms) and wholesale accounts are the primary sales channels, with no single customer exceeding 10% of consolidated revenues.
fell 3% to $3.1B from $3.2B a year earlier and was not reported for the year; the rose to 20.3% from 14.9% in FY2024 partly due to a prior-year one-time deferred tax benefit.
North America grew 14% on 5% growth and 210 of expansion, while Greater China EBIT fell 20% on a 13% revenue decline and EBIT dropped 93% to $18M on a 31% revenue fall from a strategic reset.
was $2.9B and the company returned $2.5B to shareholders via dividends, pausing share repurchases; cash and equivalents ended at $6.7B, down 22.6% .
What changed
FY2026 against the 42.7% FY2025 base: management had expected new tariffs to materially increase cost of sales, but margin rose 0.2 points to 42.9% after a $986M IEEPA tariff recovery benefit.
Digital sales after the 20% FY2025 plunge: the channel is now reported inside , which fell 6% to $17.7B for the year on lower traffic, with quarterly NIKE Direct declines of 4%, 8%, and 7% currency-neutral across Q1–Q3 FY2026.
Total in Q1 FY2026 reversed three straight quarters of decline with a 1% rise, and the full year held flat at $46.4B versus the 10% FY2025 fall.
Pace of the $18B program: after $5.3B returned in FY2025, buybacks were paused in FY2026 and $2.5B was returned via dividends only.
Greater China after the 10% currency-neutral Q3 FY2026 fall: full-year Greater China fell 20% on a 13% revenue decline, extending the weakness seen in prior-year quarters.
What to watch
Q1 FY2027 against the 42.9% FY2026 base as North America tariff costs and the $986M IEEPA recovery benefit lapse
trend next quarter to see if the 6% annual decline and quarterly traffic drops stabilize
Resumption of share repurchases as buybacks stayed paused with cash and equivalents at $6.7B
Greater China next quarter after the full-year 13% decline and 20% drop
Nearly all products are manufactured by independent contractors, with footwear heavily concentrated in Vietnam (52%), Indonesia (27%), and China (16%).
Competition is intense from major brands like adidas, Puma, and Under Armour, with key competitive factors including product innovation, brand connection, and distribution.
The company emphasizes innovation through technologies like Nike Air, Zoom, and Flyknit, and protects its brand with trademarks and patents worldwide.
As of May 31, 2026, NIKE had approximately 73,000 employees globally and maintained a commitment to diversity, inclusion, and employee development.
NIKE faces material risks from global economic volatility, intense competition, supply chain concentration, and evolving trade policies that could pressure margins and growth.
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Global economic uncertainty, including inflation, interest rates, and recession risk, may reduce consumer discretionary spending, leading to lower demand, higher discounts, and margin pressure.
Intense competition and rapid shifts in consumer preferences, accelerated by AI and digital disruption, require continuous innovation; failure to adapt could erode market share and sales.
NIKE relies on a concentrated base of contract manufacturers for footwear; disruption at key suppliers could materially impair product supply and financial results.
Changes in U.S. and foreign trade policies, including tariffs and trade restrictions, could increase costs, disrupt supply chains, and adversely affect operations.
Failure to accurately forecast demand may result in excess or shortages, leading to write-downs, discounted sales, or lost and brand damage.
Cybersecurity threats and complex data privacy regulations pose ongoing risks of operational disruption, reputational harm, and compliance costs.
We do not believe there are any material pending legal proceedings, other than ordinary routine litigation incidental to our business, to which we are a party or of which any of our property is the subject. Refer to Note 16 — Commitments and Contingencies in the accompanying Not…
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We do not believe there are any material pending legal proceedings, other than ordinary routine litigation incidental to our business, to which we are a party or of which any of our property is the subject. Refer to Note 16 — Commitments and Contingencies in the accompanying Notes to the Consolidated Financial Statements for additional information.
Quantitative and Qualitative Disclosures About Market Risk
The company uses derivatives to hedge foreign currency and interest rate exposures, with a one-day VaR of $66 million as of May 31, 2026.
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Foreign currency risk arises from international sales, sourcing, and funding; the company hedges with forwards and options, delaying exchange rate impacts on financial statements.
Hedging starts 12–24 months ahead of forecasted transactions, with incremental hedges up to 100% of exposure; major currency pairs include EUR/USD, CNY/USD, GBP/EUR, and JPY/USD.
Interest rate risk is managed by varying debt mix (, bank loans, fixed-rate debt) and using receive-fixed, pay-variable swaps on a portion of fixed-rate debt.
The one-day 95% VaR for foreign currency derivatives was $66 million at May 31, 2026, down from $107 million a year earlier due to lower currency volatilities.
The VaR model covers only foreign currency forwards and options, excluding intercompany loans, fixed-rate debt, and , which are deemed immaterial or separately managed.
Long-term fixed-rate U.S. dollar debt totals $8.0 billion with a weighted average rate of 3.1%; $2.4 billion notional of swaps converts fixed to variable rates.
NIKE's FY2026 net income fell to $3.1B from $5.7B in FY2024, with revenues declining to $46.4B; management and auditor confirmed effective internal controls.
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Management assessed as effective as of May 31, 2026, using the COSO 2013 framework.
PricewaterhouseCoopers LLP issued an unqualified opinion on the consolidated financial statements and internal control effectiveness.
The critical audit matter identified was accounting for income taxes, involving significant judgment and complex tax laws.
FY2026 revenues were $46.4B, down from $51.4B in FY2024, with of $3.1B versus $5.7B in FY2024.
The rose to 20.3% in FY2026 from 14.9% in FY2024, partly due to a prior-year one-time deferred tax benefit.
Total gross were $953M as of May 31, 2026, with $742M that would affect the if recognized.